EA Stock plummeted following its recent earnings call. Not only that, the drop in EA’s stock was the biggest in the history of the company is 10 years. However, it seems that EA is recovering as its stock price is back up following the success of Apex Legends.
The reason why EA’s stock dropped last week was due to poor sales as Battlefield V didn’t meet its sales expectations. However, poor Battlefield 5 sales were part of the reason.
However, last week EA also launched the free-to-play Battle Royale game, Apex Legends. The game was an instant success as it managed to appeal 10 million players within 72 hours of its launch.
During its earnings call, EA CEO blamed the Battlefield 5 single-player campaign to not meeting sales expectations. According to him, Battle Royale was extremely popular in 2018 but, DICE decided to delay the Firestorm mode and focused on the single-player campaign.
Furthermore, EA noted that delaying the game to November also impacted the sales. By the time Battlefield V released, its competition was heavily discounted and that is why many missed out on the game.
Apex Legends is probably the major reason behind EA’s stock to rise again. The game’s success was not only because of its quality but also due to the goodwill that Respawn Entertainment has among gamers.
The studio is also working on Star Wars: Jedi Fallen Order. During the earnings call, EA revealed that Jedi Fallen Order gameplay will be revealed soon. EA CEO and CFO got to play the game and both are describing it as spectacular.
This year EA is hoping for Anthem and Star Wars Jedi Fallen Order to succeed. If these games are as good as Bioware and EA are claiming them to be, then it will result in financial success for EA.
However, EA execs dumping millions worth of stock just a few weeks before Anthem’s launch indicates that things aren’t looking great. It seems that EA execs have no faith in Anthem and that is why they dumped stocks the first chance they got.
Apex Legends is a free-to-play battle royale game developed by Respawn Games for PC, Xbox One and PlayStation 4.